Digital transformation and resilience in family business: an exploratory study of generational dynamics

Abstract

Purpose

The paper aims to contribute to the advancement of the debate on digital innovation and entrepreneurship from a cross-generational perspective in the context of family businesses. Specifically, the paper explores the contribution provided by the young generations of entrepreneurs to the digital transformation and resilience of family businesses during the pandemic emergence of COVID-19. Focusing on the need for a major understanding of digital resilience in the context of family businesses and small and medium-sized enterprises, the paper aims to provide theoretical and empirical contributions in replying to the following research question: How did young entrepreneurs contribute to the resilience and the digital transformation of their family businesses during COVID-19?

Design/methodology/approach

The methodology consisted of a two-stage qualitative investigation including a focus group managed in presence with the involvement of 24 young entrepreneurs and a self-administered online survey involving the family businesses belonging to the Association of Young Entrepreneurs of Confindustria Puglia (South Italy) that has allowed to collect 47 replies, with a 32% response rate.

Findings

The paper presents evidence about the resilience of family businesses during the COVID-19 supported by the disruptive role of emerging digital technologies. Our analysis demonstrates that young entrepreneurs adopted different patterns of digital transformations, depending on the firm’s industry and the family firm’s digital maturity. Digital resilience in the context of the observed family businesses produced different benefits in terms of competitiveness, effectiveness of decision-making, visibility and communication and new opportunities for value creation; it occurred in several business areas, including production, logistics, sales and human resources management.

Practical implications

The study highlights the relevant role that younger generations can play in exploring innovation opportunities associated with digitalisation as well as in contributing to reinforce innovation and resilience capability of their family businesses through collaboration with external stakeholders and ecosystems.

Originality/value

The value of the research consists in the attempt to analyse the meaning and implication of digital innovation in the context of family business as a driver for their resilience capability. The Family Businesses Digital Readiness and Young Entrepreneurs Contributions Matrix presented into the study as an original contribution of synthesis of the evidence collected.

Citation

Del Vecchio, P., Secundo, G. and Garzoni, A. (2024), "Digital transformation and resilience in family business: an exploratory study of generational dynamics", European Journal of Innovation Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/EJIM-02-2024-0137